Why Is the Market for Honey Efficient Despite the Potential

Multiple Choice

Why is the market for honey efficient despite the potential problem of pollination externalities?

A) The government offers a Pigouvian subsidy for the production of honey.
B) The government imposes a Pigouvian tax on the production of honey.
C) The quantity of honey that can be produced each year is capped.
D) Beekeepers are paid for the pollination services their bees provide, thus internalizing the externality.